The table below shows the quantity demanded and supplied at various wage rates for a competitive market.   Wage Rate Quantity of Workers Demanded Quantity of Workers Supplied $100 5 50 90 10 45 80 20 40 70 35 35 60 50 30   If the workers form a union and negotiate a weekly wage of $90, how many workers will be supplied and demanded?   Multiple Choice   The quantity demand will be 10 and the quantity supplied will be 35.   The quantity demanded will be 10 and the quantity supplied will be 45.   The quantity demand and supplied will both be 35.   The quantity demanded will be 35 and the quantity supplied will be 45.

The town of Bookville has a massive public library system. Bookville's municipal government faces a tradeoff between retaining the current number of library workers and replacing some of its workers with computers. The four options available to the government are given in table below.     Number of workers Number of computers Choice A 30 50 Choice B 20 100 Choice C 10 150 Choice D 5 300   Computers and software cost $5,000 each and must be replaced each year. In a non-unionized labor market, workers are paid $20,000 per year. In these circumstances, the optimal choice from a cost perspective for the city government is Question 4 options:   Choice A   Choice B   Choice C   Choice D

Table 15.6 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. a. What would the equilibrium wage and quantity be in this market if no union existed? b. Assume that the union has enough negotiating power to raise the wage to $4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?  

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